Techniques and systems for determining a valuation for securities that do not have an established valuation mechanism are described herein. Derivative securities based on underlying employee stock options where the maturity of the derivative security is tied to exercise and forfeiture behaviors of individuals owning the stock options are also described herein.
Organizations such as corporations commonly award employees stock options as part of their compensation to employees. It is sometimes necessary to ascribe a value to such stock options for inter alia tax purposes and financial reporting.